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NATURE OF BUSINESS
6 Months Ended
Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
NATURE OF BUSINESS

Direct Insite Corp. (“Direct Insite” or the “Company”) operates as a Software as a Service (“SaaS”) provider, providing financial supply chain automation and workflow efficiencies within the Procure-to-Pay and Order-to-Cash processes. Specifically, Direct Insite’s global electronic invoice (“e-invoice”) management services automate complex manual business processes such as invoice validation, order matching, consolidation, dispute handling, and e-payment processing in a business-to-business transaction based “fee for services” business model.

 

The Company’s revenue comes from (i) recurring, on-going services that are billed monthly and (ii) non-recurring, professional services derived from the configuration of the Company’s software platform.

 

Throughout the year, the Company operated redundant data centers in Miami, Florida, and Amsterdam, Netherlands.

 

As described in Note 9, the Company has three major customers that accounted for 75.8% and 81.3% of the Company’s revenue for the three months ended June 30, 2016 and 2015, respectively, and 79.1% and 80.9% of the Company’s revenue for the six months ended June 30, 2016 and 2015, respectively.  Loss of any of these customers would have a material effect on the Company.

 

In November 2015, we were notified by HP Enterprise Services (“HPE”) that one of its clients, representing approximately 5.7% and 14.2% of our revenue for the six months ended June 30, 2016 and 2015, respectively, was terminating its contract with HPE effective February 23, 2016.  As disclosed in our Current Report on Form 8-K filed with the SEC on February 19, 2016, despite efforts to negotiate a direct contractual agreement with this client, the client ultimately decided to terminate its use of our services, and accordingly, the Company has not recorded revenue from this client after February 2016.